Bush on Biofuel in Brazil - page 3 of 3

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I appreciate very much the innovation that's taking place here in Brazil. I mean, if you're the leader in ethanol I believe you'll continue to come up with technologies that should be available for others. Your H-bio process for refining biodiesel from soy and other agricultural products is such an example. In other words, you'll be able to use regular refinery as a result of the technological developments that you've got here. And that makes a lot of sense, and I congratulate you, Mr. President, and Petrobras for staying on the leading edge of technological change.

A lot of people wonder whether or not it makes sense to develop an alternative-fuel infrastructure if the automobile doesn't stay up with it. Well, most people in America don't know that there are millions of flex-fuel vehicles on our street today. Just people don't know it. In other words, we have now got the capacity to manufacture automobiles in a way that meets the demands for ethanol. Flex-fuel means you can either use gasoline or alternative fuels, your choice. And in America, we are - that technology is available. So my fellow citizens shouldn't fear the development of an alternative source of energy industry because the consumer has got the capacity to buy an automobile that will meet those new productions.

I'm very optimistic that America can benefit from alternative energy sources, so optimistic that I laid out an ambitious goal for our country, and that is to reduce gasoline consumption by 20 percent over 10 years. In other words, we have a mandated fuel standard of 35 billion gallons of alternative fuels to be used by 2017. That is now seven times more the amount of alternative fuels we're using. Right now, we're using about 5 billion gallons of ethanol. I believe that the technologies will be such that America will be consuming 35 billion gallons of alternative fuels.

And that's important for our country. It is a commitment to becoming less dependent on oil, and it's a commitment to be better stewards of the environment.

In my budget, Mr. President, I proposed to Congress that we invest $1.6 billion over 10 years on additional research to make sure that we can have alternative fuel stocks to make ethanol. Just so you know, in the last years - so long as I've been the President, we spent about $12 billion on new technologies that will enable us to achieve economic independent, as well as be better stewards of the environment.

There's a lot we can do together. I appreciate so very much the idea of Brazil and America sharing research and development opportunities. You've got great scientists, we've got great scientists; it makes sense for us to collaborate for the good of mankind. And part of our initiative is that we are going to work together efficiently and to cooperate on research and development.

I also think the President's idea of helping others realize the benefits of alternative fuels makes a lot of sense. And so we applaud the Inter-America Development Bank, it's efforts to try to get loans and capital into countries that could benefit from alterative sources of energy. I'm particularly anxious to work with the President on helping Central America become less dependent on oil, become energy self-sufficient. It's in - it's in the interest of the United States that there be a prosperous neighborhood. And one way to help spread prosperity in Central America is for them to become energy producers, not become - not remain dependent on others for their energy sources.

And finally, the President mentioned the fact that at the United Nations, there was a International Biofuels Forum. What he didn't tell you, it was his idea. And I applaud the fact, Mr. President, that you put that idea out. It makes a lot of sense for countries like China and India to understand the potentials of alterative sources of energy. And I believe that Brazil and the United States has got the capacity to help lead the way toward that better day.

So, Mr. President, it has been a great first meeting here. I appreciate the fact that you're about to buy me lunch. I'm kind of hungry. (Laughter.) Looking forward to eating some of that good Brazilian food.

But in the meantime, I hope the citizens of Brazil, like the citizens of the United States, are as optimistic about the future as these two Presidents are. And one reason we're optimistic is because we see the bright and real potential for our citizens being able to use alternative sources of energy that will promote the common good.

George Bush is on a five-country swing of Latin America to "polish the U.S. image," as characterized today by the Bloomberg news service.

Protesters and police clashed in Sao Paulo yesterday ahead of Bush's visit. Activists from Greenpeace said increased ethanol production might result in more clearing of the Amazon rain forest.